Nasdaq Rallies on Semiconductor Strength as Investment Banks Raise S&P 500 Targets

The Nasdaq 100 Index ETF (QQQ) rose over 1% on June 30, Eastern Time, while the Philadelphia Semiconductor Index jumped more than 3%. Several semiconductor stocks led the charge, with KLA and Lam Research rising 5.94% and 4.91%, respectively.

The strong performance of these stocks is being driven by a combination of factors, including improved corporate earnings and the AI capital expenditure 'supercycle'. According to Goldman Sachs, this rally is not solely based on valuation premiums, but is instead supported by real profit growth driven by demand for AI infrastructure, such as semiconductors and data centers.

A number of major investment banks have raised their S&P 500 year-end 2026 target prices in recent days. Goldman Sachs, Deutsche Bank, and Morgan Stanley all set their targets at 8,000, while Citigroup and Oppenheimer set theirs at 8,100.